Sumitomo seeks Khanh Hoa backing for LNG and OSW projects

Sumitomo seeks Khanh Hoa backing for LNG and OSW projects

Japan-based Sumitomo Corporation is keen on investments in the Van Phong 2 liquefied natural gas (LNG) power plant and other offshore wind (OSW) power ventures in Khanh Hoa province.

On August 7, Tran Quoc Nam, Chairman of Khanh Hoa People’s Committee, met with representatives of Sumitomo and Van Phong Power Company - a wholly owned subsidiary of Sumitomo Corporation and the investor of the Van Phong 1 coal-fired power plant.

At the meeting, Shuichiro Ikemoto, director of International Energy Solutions Division No.2 at Sumitomo Corporation, and Nguyen The Vinh, CEO of Van Phong Power Co., Ltd., briefed the operations of the Van Phong 1 coal-fired power plant.

The plant went into operation in 2024 with a total capacity of 1,320 MW, supplying 6.75 million MWh of electricity. In the first six months of 2025, the plant generated revenue of VND9.24 trillion ($352.3 million) and contributed more than VND506 billion ($19.3 million) to the local budget.

“Sumitomo is keen to invest in the Van Phong 2 LNG power plant in Dong Ninh Hoa ward and in OSW power projects and the group is seeking support from local leaders to move these initiatives forward,” Ikemoto said.

Speaking at the meeting, Nam said, "Vietnam and Japan maintain a strategic cooperative relationship in many fields. Following the recent merger of Khanh Hoa and Ninh Thuan provinces, the new Khanh Hoa province has opened up significant development space, creating investment opportunities for businesses."

The chairman highly appreciated Sumitomo Group’s contributions to the province’s socioeconomic development and acknowledged the group’s proposals for investing in new energy projects in Khanh Hoa.

"Energy is one of the key sectors on the priority investment list to stimulate economic growth. Khanh Hoa has ample potential to develop LNG power projects through 2030. Therefore, the province creates better conditions for investors, especially strategic partners such as Sumitomo, to explore opportunities in new energy projects," said Nam.

In May, Sumitomo announced that it will transfer half of its equity interest in Van Phong Power Co., Ltd. The move is part of its strategy to shift its resources towards power generation with lower environmental impacts.

In addition to Van Phong 1, Sumitomo also invested in the Phu My 2.2 Power Plant in Ba Ria-Vung Tau. This $400 million venture is supported by EDF (France), Sumitomo (Japan), and JERA (Japan).

The plant went into commercial operation in 2005, and, pursuant to the build-operate-transfer contract, it has reached the end of its initial operational period. Phu My 2.2 was transferred to the Vietnamese authorities in February, who appointed Vietnam Electricity to operate it.

VIR